February 15, 2005

SUBJECT:               Award of Contract for the Maintenance of the City’s Telephone System (F0402-31)

REPORT IN BRIEF

Approval is requested for the award of a three-year contract to Avaya Communication of Highlands Ranch, Colorado, for the maintenance of the City’s telephone system, including voice mail, for the Information Technology Department.

BACKGROUND

The City’s telephone system consists of the Lucent Technologies DEFINITY Enterprise Communications Server (ECS), the INTUITY voice mail system and miscellaneous telephone sets, small recorders and other desktop accessories.  In November 1999, Council awarded a contract to Lucent for an upgrade to the existing core system (RTC 99-459).  This upgrade was installed in February 2000.  In September 2000, Lucent Technologies spun off its Enterprise Networks Group as a separate business entity called Avaya Communication.

In February 2002, Council awarded the current maintenance agreement to Avaya for a three-year period (RTC 02-247).  This contract will expire on February 25, 2005.

DISCUSSION

The requested contract will cover the maintenance of all of the City’s telephone equipment.  Service on the telephone switch and sets will be available 24 hours per day seven days per week.

Section 2.08.070 (b) of the Sunnyvale Municipal Code exempts from competitive bidding those situations where the solicitation of bids would be impractical, unavailing or impossible.  Soliciting bids for the maintenance of the Lucent Technologies equipment would be impossible since the DEFINITY and INTUITY systems are proprietary.  Boards and cards are available only from Avaya or an Avaya authorized business partner. Software upgrades and enhancements are available only from the factory through Avaya Communication.

FISCAL IMPACT

Cost to the City for the three-year contract will not exceed $255,000.  This represents an increase of $3501 over the contract that will expire later this month.  Funds are available in Information Technology operating budget for Activities 764020 – Vendor Provided Technical Support and 764230 – Maintain Telephone System.

RECOMMENDATION

It is recommended that Council award a three-year contract in an amount not to exceed $255,000 to Avaya Communication for the maintenance of the City’s telephone system, including voice mail.

Prepared by:

Elaine Wesely

Purchasing Officer

Reviewed by:

Mary J. Bradley

Director, Finance

Reviewed by:

Shawn Hernandez

Director, Information Technology

Approved by:

Amy Chan

City Manager

Attachments

A. Draft Blanket Purchase Order(PDF)

B. Avaya Customer Agreement(PDF)